[Federal Register Volume 78, Number 61 (Friday, March 29, 2013)]
[Proposed Rules]
[Pages 19152-19155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07114]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM12-19-000]
Revisions to Modeling, Data, and Analysis Reliability Standard
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
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SUMMARY: Under section 215 of the Federal Power Act (FPA), the Federal
Energy Regulatory Commission (Commission) proposes to approve
Reliability Standard MOD-028-2, submitted to the Commission for
approval by the North American Electric Reliability Corporation (NERC),
the Commission-certified Electric Reliability Organization. NERC
proposes one modification to the currently-effective Reliability
Standard MOD-028-1, pertaining to the information a transmission
service provider must include when calculating Total Transfer
Capability using the area interchange methodology for the on-peak and
off-peak intra-day and next day time periods. The Commission also
proposes to approve NERC's proposed implementation plan and retirement
of the currently-effective standard.
DATES: Comments are due May 13, 2013.
ADDRESSES: You may submit comments, identified by docket number by any
of the following methods:
Agency Web site: http://ferc.gov. Documents created
electronically using word processing software should be filed in native
applications or print-to-PDF format and not in a scanned format.
Mail/Hand Delivery: Those unable to file electronically
may mail or hand-deliver comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT:
Rachel Bryant (Legal Information), Office of General Counsel, Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426, 202-502-6155, [email protected].
Syed Ahmad (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, 202-502-8718, [email protected].
Christopher Young (Technical Information), Office of Energy of Energy
Policy and Innovation, Federal Energy Regulatory Commission, 888 First
Street NE., Washington, DC 20426, 202-502-6403,
[email protected].
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
Table of Contents
Paragraph
numbers
I. Background........................................... 2
II. NERC Petition....................................... 7
III. Discussion......................................... 10
IV. Information Collection Statement.................... 14
V. Environmental Analysis............................... 16
VI. Regulatory Flexibility Act Analysis................. 17
VII. Comment Procedures................................. 18
VIII. Document Availability............................. 22
Issued March 21, 2013
1. Pursuant to section 215 of the Federal Power Act (FPA),\1\ the
Commission proposes to approve Modeling, Data, and Analysis (MOD)
Reliability Standard MOD-028-2, submitted to the Commission for
approval by the North American Electric Reliability Corporation (NERC),
the Commission-certified Electric Reliability Organization (ERO). NERC
proposes one modification to the currently-effective Reliability
Standard MOD-028-1, pertaining to the information a transmission
service provider \2\ must include when calculating Total Transfer
Capability (TTC) using the area interchange methodology for the on-peak
and off-peak intra-day and next day time periods. The Commission also
proposes to approve NERC's proposed implementation plan and retirement
of the currently-effective standard.
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\1\ 16 U.S.C. 824o (2006).
\2\ NERC defines ``transmission service provider'' as ``[t]he
entity that administers the transmission tariff and provides
Transmission Service to Transmission Customers under applicable
transmission service agreements.'' NERC, Glossary of Terms Used in
NERC Reliability Standards 64 (2011), http://www.nerc.com/files/Glossary_of_Terms.pdf. We also use the term ``transmission
operator'' in this proposed rulemaking, which is defined by NERC as
``[t]he entity responsible for the reliability of its `local'
transmission system, and that operates or directs the operations of
the transmission facilities.'' Id. These terms indicate distinct
NERC functional entities, to which different requirements within the
same Reliability Standard may apply. Accordingly, in the context of
describing the requirement of a Reliability Standard, we necessarily
use either or both terms when appropriate.
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I. Background
2. Section 215 of the FPA requires a Commission-certified ERO to
develop mandatory and enforceable Reliability Standards, subject to
Commission review and approval. Specifically, the Commission may
approve, by rule or order, a proposed Reliability Standard or
modification to a Reliability Standard if it determines that the
Standard is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.\3\ Once approved, the
Reliability Standards may be enforced by the ERO, subject to Commission
oversight, or by the Commission independently.\4\ Pursuant to section
215 of the FPA, the Commission established a process to
[[Page 19153]]
select and certify an ERO,\5\ and subsequently certified NERC.\6\
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\3\ 16 U.S.C. 824o(d)(2).
\4\ Id. 824o(e)(3).
\5\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
\6\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g & compliance, 117 FERC ] 61,126 (2006), aff'd
sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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3. In March 2007, the Commission issued Order No. 693, evaluating
107 Reliability Standards, including 23 MOD standards pertaining to
methodologies for calculating Available Transfer Capability (ATC) and
Available Flowgate Capability (AFC).\7\ The Commission approved one out
of the 23 MOD standards unconditionally, approved nine with direction
for modification and left the remaining 13 pending with direction for
modification.\8\
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\7\ Mandatory Reliability Standards for the Bulk-Power System,
Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1046, order on
reh'g, Order No. 693-A, 120 FERC ] 61,053 (2007). See also
Preventing Undue Discrimination and Preference in Transmission
Service, Order No. 890, FERC Stats. & Regs. ] 31,241, order on
reh'g, Order No. 890-A, FERC Stats. & Regs. ] 31,261 (2007), order
on reh'g, Order No. 890-B, 123 FERC ] 61,299 (2008), order on reh'g,
Order No. 890-C, 126 FERC ] 61,228 (2009), order of clarification,
Order No. 890-D, 129 FERC ] 61,129 (2009) (directing public
utilities to develop Reliability Standards and business practices to
improve the consistency and transparency of ATC calculations).
\8\ Order No. 693, FERC Stats. & Regs. ] 31,242 at P 1010.
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4. On November 24, 2009, the Commission issued Order No. 729,\9\
which approved Available Transmission System Capability Reliability
Standard MOD-001-1 as part of a set of Reliability Standards that
pertain to methodologies for the consistent and transparent calculation
of ATC and AFC. These Reliability Standards were designed to ensure,
among other things, that transmission service providers maintain
awareness of available system capability and future flows on their own
systems, as well as those of their neighbors, and to reduce
transmission service provider discretion and enhance transparency in
the calculation of ATC.\10\ Requirement R1 of MOD-001-1 required a
transmission operator to select one of three methodologies for
calculation of ATC or AFC for each available ATC path for each time
frame (hourly, daily or monthly). NERC developed these three
methodologies as detailed in Reliability Standards MOD-028-1 (the area
interchange methodology), MOD-029-1a (the rated system path
methodology), and MOD-030-2 (the flowgate methodology).\11\
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\9\ Mandatory Reliability Standards for the Calculation of
Available Transfer Capability, Capacity Benefit Margins,
Transmission Reliability Margins, Total Transfer Capability, and
Existing Transmission Commitments and Mandatory Reliability
Standards for the Bulk Power System, Order No. 729, 129 FERC ]
61,155 (2009), order on clarification, Order No. 729-A, 131 FERC ]
61,109, order on reh'g and reconsideration, Order No. 729-B, 132
FERC ] 61,027 (2010).
\10\ Order No. 729, 129 FERC ] 61,155 at PP 87-89.
\11\ Id. P 51.
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5. The MOD Reliability Standards related to this discussion require
certain users, owners, and operators of the bulk power system to
develop consistent and transparent methodologies for the calculation of
ATC or AFC.\12\ Three currently-effective Reliability Standards--MOD-
028-1, MOD-029-1a, and MOD-030-2--address three different methodologies
for calculating ATC or AFC.\13\ MOD-028-1, which describes the area
interchange methodology for determining ATC, only applies to those
transmission operators and transmission service providers that elect to
implement this particular methodology as part of their reliability
compliance with Reliability Standard MOD-001-1. MOD-001-1 requires
transmission service providers to ``[adhere] to a specific documented
and transparent methodology'' and ``to select one of three
methodologies for calculating [ATC] or [AFC] for each available
transfer capability path for each time frame (hourly, daily or monthly)
for the facilities in its area.'' \14\
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\12\ Id. P 1.
\13\ Id. P 51.
\14\ Id. P 19.
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6. Requirement R3.1 of MOD-028-1 details the information a
transmission operator must include in its TTC determination under the
area interchange methodology for the on-peak and off-peak intra-day and
next day time periods, as well as future days two through 31 and for
months two through 13.\15\
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\15\ Id. P 57 (stating that this information includes: expected
generation and transmission outages, additions, and retirements;
load forecasts; and unit commitment and dispatch order).
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II. NERC Petition
7. On August 24, 2012, NERC submitted a Petition for Approval of
Proposed Reliability Standard (Petition), seeking Commission approval
of a proposed Reliability Standard, MOD-028-2, Area Interchange
Methodology, Requirement R3.1, which would revise the currently
effective ``Version 1'' standard--MOD-028-1.
8. NERC states that Florida Power & Light Company (FPL) requested
that NERC interpret MOD-028-1, Requirement R3.1. Specifically, FPL
requested that NERC clarify whether Requirement R3.1, which instructs
transmission operators to include data ``[f]or on peak and off peak
intra-day and next day TTCs,'' actually requires transmission operators
to provide separate TTC numbers for different portions of the current
day. NERC explains that, upon reviewing FPL's request for
interpretation, the NERC Standards Committee determined that providing
this clarification might require a modification to the standard.\16\ In
its Petition, NERC asserts that it intended the language of MOD-028-1
to specify that, for TTC used in current-day and next-day ATC
calculations, the load forecast used should be consistent with the
period being calculated. Specifically, NERC states:
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\16\ Petition, Exhibit E (Record of Development of Proposed
Reliability Standard).
Requirement R3 of the MOD-028-1 standard is proposed to be
modified to clarify language regarding load forecasting, to indicate
that for days two through 31, a daily load forecast is required
(identical to the current standard); for months two through 13, a
monthly load forecast is required (identical to the current
standard); and for current-day and next-day, entities may use either
a daily or hourly load forecast (the language being clarified). The
new language clarifies and is consistent with the intent of the
original requirement language, and does not materially change the
standard.\17\
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\17\ Petition at 7 (emphasis added).
9. NERC thus proposes Reliability Standard MOD-028-2, which revises
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MOD-028-1 as follows:
R3. When calculating TTCs for ATC Paths, the Transmission
Operator shall include the following data for the Transmission
Service Provider's area * * *
R3.1. For on peak and off peak intra day and next dayFor TTCs,
use the following (as well as any other values and additional
parameters as specified in the ATCID).
R3.1.1. Expected generation and Transmission outages, additions,
and retirements, included as specified in the ATCID.
R.3.1.2. LoadA daily or hourly load forecast for the applicable
period being calculatedTTCs used in current-day and next-day ATC
calculations.
R.3.1.3. A daily load forecast for TTCs used in ATC calculations
for days two through 31.
R.3.1.2.R3.1.4. A monthly load forecast for TTCs used in ATC
calculations for months two through 13 months TTCs.
III. Discussion
10. Pursuant to section 215(d) of the FPA, we propose to approve
NERC's proposed Reliability Standard MOD-028-2, as just, reasonable,
not unduly discriminatory or preferential and in the public interest.
We agree with NERC that the proposed Reliability Standard clarifies the
existing provision and does not present any reliability concerns.
[[Page 19154]]
11. However, we have identified a concern regarding possible market
implications of NERC's proposed modification to Requirement R3.1 of
MOD-028-2. Although NERC's statutory functions are properly focused on
the reliability of the Bulk-Power System, the Commission has determined
that the ERO should also attempt to develop Reliability Standards that
have no undue negative effect on competition. In Order No. 729, the
Commission stated ``that a proposed Reliability Standard should not
unreasonably restrict [ATC] * * * beyond any restriction necessary for
reliability.'' \18\ The Commission noted that a transmission service
provider could use parameters and assumptions to skew its ATC values,
but stated that it expected such risks to be mitigated through
complaints and the Commission's market oversight authority.\19\ In
Order No. 672, the Commission stated that, ``[a]mong other possible
considerations, a proposed Reliability Standard should not unreasonably
restrict [ATC] * * * beyond any restriction necessary for reliability
and should not limit use * * * in an unduly preferential manner.'' \20\
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\18\ Order No. 729, 129 FERC ] 61,155 at P 109.
\19\ Id. P 135.
\20\ Order No. 672, FERC Stats. & Regs. ] 31,204 at P 332.
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12. Although section 215(d)(2) of the FPA requires the Commission
to give ``due weight'' to the technical expertise of the ERO, the
statute is clear that ``due weight'' is not to be given ``with respect
to the effect of a standard on competition.'' \21\
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\21\ 16 U.S.C. 824o(d)(2).
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13. We believe that NERC's proposed revision to R3.1.2 allows a
transmission operator flexibility to choose either a daily or hourly
load forecast when forecasting current-day and next-day TTC. However,
we seek comments regarding whether a transmission operator could
potentially use a load forecast assumption that is not applicable to
the period being calculated. For example, a transmission operator using
daily on-peak load forecasts in determining off-peak TTC for the
current day could, either purposefully or inadvertently, suppress off-
peak ATC used by generators that make off-peak sales, or other
customers who purchase hourly service. Accordingly, we seek comment
whether this gives rise to any market-related concerns or the potential
for undue discrimination in ATC calculations.
IV. Information Collection Statement
14. The Office of Management and Budget (OMB) regulations require
that OMB approve certain reporting and recordkeeping (collections of
information) imposed by an agency.\22\ The information contained here
is also subject to review under section 3507(d) of the Paperwork
Reduction Act of 1995.\23\
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\22\ 5 CFR 1320.11.
\23\ 44 U.S.C. 3507(d).
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15. As stated above, the Commission previously approved, in Order
No. 729, the Reliability Standard that is the subject of the current
rulemaking. This proposed rulemaking proposes to approve one revision
to a previously approved Reliability Standard developed by NERC as the
ERO. The proffered revision relates to an existing Reliability Standard
and does not change this standard; therefore, it does not add to or
otherwise increase entities' current reporting burden. Thus, the
current proposal would not materially affect the burden estimates
relating to the currently effective version of the Reliability
Standards presented in Order No. 729. The MOD-028-1 Reliability
Standard that is subject of the approved revision was approved in Order
No. 729, and the related information collection requirements were
reviewed and approved, accordingly.\24\ The Commission will submit the
revised Reliability Standard to OMB as a request for ``no material'' or
``nonsubstantive'' change.\25\
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\24\ See Order No. 729, 129 FERC ] 61,155 at PP 307-312.
\25\ This type of submittal means that there is no change to the
existing burden estimates and the existing expiration date.
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V. Environmental Analysis
16. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\26\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\27\ The actions proposed
herein fall within this categorical exclusion in the Commission's
regulations.
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\26\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
\27\ 18 CFR 380.4(a)(2)(ii).
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VI. Regulatory Flexibility Act Analysis
17. The Regulatory Flexibility Act of 1980 (RFA) \28\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and that minimize
any significant economic impact on a substantial number of small
entities. The Small Business Administration's Office of Size Standards
develops the numerical definition of a small business.\29\ For electric
utilities, a firm is small if, including its affiliates, it is
primarily engaged in the transmission, generation and/or distribution
of electric energy for sale and its total electric output for the
preceding twelve months did not exceed four million megawatt hours. The
Commission does not expect the revision discussed herein to materially
affect the cost for small entities to comply with the proposed
Reliability Standard. Therefore, the Commission certifies that the
proposed rule will not have a significant economic impact on a
substantial number of small entities.
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\28\ 5 U.S.C. 601-612.
\29\ See 13 CFR 121.201.
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VII. Comment Procedures
18. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due May 13, 2013. Comments must refer to
Docket No. RM12-19-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
19. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
20. Commenters that are not able to file comments electronically
may mail or hand-deliver comments to: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
21. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded
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remotely as described in the Document Availability section below.
Commenters on this proposal are not required to serve copies of their
comments on other commenters.
VIII. Document Availability
22. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (http://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A,
Washington DC 20426.
23. From the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
24. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1 (866) 208-3676) or email at
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
[email protected].
By direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-07114 Filed 3-28-13; 8:45 am]
BILLING CODE 6717-01-P